SBI becomes most volatile now

Why this is so

SBI management has taken some incredible decisions over interest rates and movement of deposits. The ever chaging decisions is making the stake impossible to hold for many institutions. Institutional purchases and sales of millions of units use to cut down the cost of the value and share prices often falls.

SBI becomes most volatile now

Then the purchase happens.. the open interest will increase the price goes up as there are no bad news. If any bad news as usual the rest of the units also will be sold by retail sellers and finally the institutional holders will be in pressure to sell more. Finally these all will lead to heavy down fall of shares. If news favors the price goes up as usual.

SBI becomes most volatile now

Details about SBI volatility

The infatuations in price often lead by a severe impending damage of volatility and value of shares. How ever the strong management will never let it down more than a limit. But as per Kunal Sha the management is having more advantage of price movements. Listen his words – “Apart from say, the MD & CEO the other board members also with say, the functioning of the bank board bureau expected to kick in from say, April 1, 2016 you will see a more professional management out there in case of the state owned banks. Thirdly they have empowered state owned banks by lowering the government interference and at the same time they have made it much more accountable as well. So, this is where they are actually bridging the gap with the private banks and the banks with much more quality franchise which is like, say, BoB and SBI that continues to be our top pick in this space,”

A chart to see.. Worth to know further

SBI becomes most volatile now

The facts and decisions.. a continuous scenario… The changes and more details

SBI becomes most volatile now

A real Fact

SBI is taking different decision on NPI and other factors more than any other nationalized banks around. This is a fact that when you take such good or bad decisions the loans and repaym,ent will be effected. How ever the range and change in interest rates also will contribute more problems to the already damaged senario. SBI is rarely look to such matters and impacts. They often keep head down and move fast towards a change and when change come in effect they change the policy.. this phenomena often lead to down and up in share prices as wella s the range of shares , volume of shares and so on. SBI is on buy mood now so better try to buy more and for longer time it is assured that inless they change policy drastically the mood of movements will be up.